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Analog Devices Announces Acquisition of Maxim

  • Analog Devices Inc. (ADI) acquires Maxim Integrated Products for approximately $21 billion through a share exchange.
  • The merger of the two US analog semiconductor specialists will create a $68 billion valued entity.
  • Maxim’s revenue in fiscal year 2019 was approximately $2.3 billion, while ADI’s revenue reachd $6 billion.

According to Vincent Roche, President and CEO of ADI, “Maxim is a recognized brand in the field of signal processing and power management with a proven integrated circuit offering. Together, we are well positioned to take advantage of the next wave of semiconductor growth. »

This acquisition strengthens ADI’s position in analog semiconductors, with expected revenues of $8.2 billion and free cash flow of $2.7 billion on a pro forma basis. The new entity, which brings together more than 10,000 engineers, will have a research and development investment capacity of approximately $1.5 billion.

ADI, whose components are used in various industrial fields such as the communications and medical equipment sectors, expects to benefit from Maxim’s presence in the automotive and data center markets. More than half of Maxim Integrated’s $2.3 billion in sales comes from the automotive and industrial sectors. Maxim’s electronic components for power management and power control also complement ADI’s product offering.

ADI will extend its expertise in the semiconductor field with a catalogue of more than 50,000 references covering frequencies from DC to 100 Gigahertz, power from nanowatts to kilowatts and from sensor to cloud.

The combination of Analog Devices’s and Maxim’s expertise and offerings will, according to ADI, enable to offer more comprehensive solutions, serve more than 125,000 customers and capture a larger share of a total target market of $60 billion. The total global semiconductor market is estimated to be worth approximately $433 billion in 2020.

The transaction is expected to close in the summer of 2021, subject to the satisfaction of customary closing conditions.